Sales of Falcon jets slowed down in the first half, as Dassault Aviation on July 23 reported 25 orders and 20 cancellations, bringing the net total to five. Still, overall sales during the first six months amounted to €610 million ($670 million), and deliveries for the entire year are expected to remain steady, at 65 Falcons.
Eighteen Falcons worth €919 million ($1 billion) were delivered in the first six months. “The beginning of the year is always slower,” noted Dassault CEO Eric Trappier. As of June 30, the Falcon backlog stood at 108 aircraft.
All of the cancellations can be traced directly to NetJets, which withdrew an order for 20 Falcon 2000s it placed in 2006. “We thought they would eventually take the aircraft, but at the beginning of the year they explained they would not,” Trappier said, speaking at the company's mid-year press conference in Paris. He added that NetJets' non-refundable deposit was very small.
The company also attributes the slowing sales to a weaker global market. “After a good 2014, the beginning of 2015 has not been very impressive,” Trappier said. He mentioned large emerging countries—especially Brazil—as particularly difficult markets in the current economic climate. “Competition is extremely fierce, while the political and economic environment remains uncertain,” the firm added in a financial release.
But he remains hopeful for the second half of the year, which is usually more active. The U.S. and Northern Europe are doing well, according to Trappier. Moreover, he noted an “active” second-hand market, a “good sign" for the new aircraft market.
Meanwhile, the Falcon 5X is nearing its first flight and Falcon 8X flight testing is in full swing. Four Falcon 8Xs are flying, and the third prototype is currently being outfitted with its interior. Dassault's engineers will use it to evaluate comfort, cabin systems and soundproofing. The fourth one will also receive a cabin interior and will be part of an endurance program as well as a certification aircraft. The 8X's entry into service remains scheduled for next year.
Trappier declined to provide a timeline for the first flight of the Falcon 5X. He remained vague on certification plans, narrowing it only to 2017.
